deflation


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deflation:

see inflationinflation,
in economics, persistent and relatively large increase in the general price level of goods and services. Its opposite is deflation, a process of generally declining prices. The U.S.
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deflation

(ECONOMICS) a decrease over time in the general level of prices, coupled with an overall reduction in the level of economic activity, new investment, etc. (compare INFLATION). In modern capitalist economies, in which inflation tends to be endemic, deflation is usually relative rather than absolute, involving a reduction in rates of price increase rather than an absolute decrease in prices.

Deflation

 

the decrease of monetary volume by means of the withdrawal from circulation of excess paper money. Deflation often precedes monetary reforms. Since World War II deflation has most often been encountered as part of the so-called deflation policy of capitalist states, which aims at stopping or decreasing the rates of growth of monetary volume and commodity prices. Deflation is realized through limitation of credits (an increase in the rate of interest, imposition of credit limits), higher taxes, reduction of expenditures for social and cultural needs, a “freeze” on wages and salaries, and other measures carried out by capitalist states. These measures result in a lowering of the rate of economic development, a deterioration in the living conditions of the toiling masses, and an intensification of the class struggle.


Deflation

 

the disintegration of rocks and soils owing to wind action, accompanied by the removal and wearing away of the broken particles. Deflation is particularly strong in those parts of deserts from which dominant winds blow (for example, in the southern part of the Karakumy desert). The processes of deflation and physical weathering result in the formation of eroded cliffs with unusual shapes, such as towers, columns, and obelisks.

deflation

[di′flā·shən]
(geology)
The sweeping erosive action of the wind over the ground.

deflation

1. Economics a reduction in the level of total spending and economic activity resulting in lower levels of output, employment, investment, trade, profits, and prices
2. Geology the removal of loose rock material, sand, and dust by the wind
References in periodicals archive ?
8 per cent fall expected by analysts and extending factory deflation to nearly three years.
Going forward, house prices are likely to decline further as deflation and lower wage growth set in.
In summary, QNB said deflation was starting to spread into lower global consumer prices, depressed wages and, to a lesser extent, softer asset prices.
Toplis explained that in a normal situation, talking about deflation would cause worries since there would be plummeting prices.
Two brief periods in the US, the first from around mid-1949 to mid-1950, and the second from the autumn of 1954 to the summer of 1955, indicate cycles of deflation in the CPI index.
The Qatar National Bank (QNB) had already warned last August that declining global food prices could increase the risk of global deflation.
They increase real income levels, thus increasing a household's purchasing power Prolonged low inflation, however, can lead to deflation.
This quick overview of monetary equilibrium allows us to clarify what is meant by deflation.
Is the global economy on the cusp of a deflation era?
Fears that a battered global economic economy has never quite reached a sustained level of recovery have begotten new anxieties about the risk of deflation -- a self-reinforcing spiral that drives down investment, spending, lending and employment.
But the Cabinet office refrained from declaring the end of deflation.